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PROJECT REPORT
ON
TO ANALYSE THE INVESTMENT BEHAVIOUR OF
RETAIL INVESTORS TOWARDS STOCK MARKET
Submitted in partial fulfillment for the award of degree of
Master of Business AdministrationSession-(2011-13)
Submitted to: Submitted by:
Mr. Anil Kumar MukeshSehrawat
Lecturer MBA 4th Sem.Department of management studies 012303911
DELHI INSTITUTE OF ADVANCED STUDIES, ROHINI(AFFILATED TO GURU GOBIND SINGH INDRPRASTHA UNIVERSITY)
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DECLARATION
I Mukesh having Roll Number, 2 of the course MBA from Delhi Institute of Advanced
Studies here by declare that the project entitled to analyse the investment behaviour of
retail investors towards stock market is an orginal work and the same has been
submitted to the institute for the award of degree.
Project In charge Signature of candidate
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ACKNOWLEDGEMENT
It is the matter of great dignity and honor that I am the part of Delhi Institute of
Advanced Studies, which provides me an opportunity to get exposure in analyzing stock
exchange.
In the present global world there is a race of competition for existence. Project is a
bridge which met the theoretical aspects with practical aspects. I also wish to express my
sincere regards to Mr. Anil Kumar (lec. Department of management studies) for his
continuous support.
I am also thankful to all the concerned teachers, friends who helped me in completing this
project.
Mukesh Sehrawat
012303911
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CONTENTS
Sr. No. Title Page No.
Declaration..2
Acknowledgement..3
Abstract...5
Literature Review...6
1. Introduction....7
About Stock Exchange
Brief History of Stock Exchanges in India
The Stock Exchanges
Function of Stock Exchange
2. Stock Market Profile....11
Most Commonly used Stock Exchanges
Bombay Stock Exchange(BSE)
National Stock Exchange(NSE)
Invest Analysis
Fundamental Analysis
Technical Analysis
3. Scope of study. .19
4. Objective of the Study.21
5. Research Methodology....22
Meaning of research
Research Design
Sampling Technique
Data Source
Research Instrument
6. Analysis of data through graphical presentation..24
7. Suggestions and Conclusions...37
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8. Limitations...38
9. Conclusions ..39
10. Bibliography ...41
11. Annexure ..42
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ABSTRACT
Since the economic liberalization there is an increase in number of investment avenues
available for retail investors, depending upon their risk appetite they can chose between
bank deposits, government / private bonds, shares and stocks, exchange traded funds
(ETF), mutual funds, insurance, derivatives, gold, silver, currencies, real estate, etc. Most
of the retail investors primary objective of investment is to earn regular income and
expected rate of return differs from individual to individual based on their level of market
knowledge and risk taking ability. The present paper assesses the behaviour of retail
investors in New Delhi region and it reveals that to increase investors confidence in
stock market must be regained in order to encourage capital mobilization through primary
market issues. This has been identified on the basis of questionnaire analysis.
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LITERATURE REVIEW
L.C.Gupta (1991) argues that designing portfolio for a client is much more than merely
picking up securities for investment. The portfolio manager needs to understand the
psyche of his client while designing his portfolio. According to Gupta, investors in Indiaregard equity, debentures and company deposits as being in more or less the same risk
category and consider including all mutual funds, including all equity funds, almost as
safe as bank deposits.
K.S. Chalapati Rao, M.R. Murthy and K.V.K Ranganathan (1999) in their research article
Someaspects of the Indian Stock Market in the post liberalization period evaluates thatas a part of the process of economic liberalization, the stock market has been assign an
important place in financing the Indian corporate sector. Besides enabling mobilizing
resources for investment, directly from the investors, providing liquidity for the investors
and monitoring and disciplining company management are the principal functions of thestock market. This paper examines the development in the Indian stock markets during
the nineties in terms of these three roles.
Kevin James (2000), in his research article The Price of Retail Investing in the UK
evaluates the financial wealth services provided by investment funds in UK, the study
identifies that the retail investors largely delegate the management of their wealth toinvestment funds. These funds in turn charge retail investors for the portfolio and risk
management services they provide, sparing retail investors the burdensome task of
performing these various services themselves. So in order to choose a sensible fund (a
fund that meets his or her requirements), a retail investor must be able to ascertain theservices provided and the price charged by each of the funds he or she may consider.
Dr. K Santi Swarup (2003) in her research article Measures for improving common
investorconfidence in Indian primary market a survey, concentrates on the decisions taken by
the
investors while investing in primary markets, the study indicates that the sample investorsgive importance to their own analysis as compared to brokers advice. They also consider
market price as a better indicator than analyst recommendations. The study also identifies
factors that are affecting primary market situation in India. Issue price, information
availability, market price after listing and liquidity emerge as important factors. Thisstudy suggests that investors need to be assured of some return and current level of risk
associated with investment in the market is very high. They have had bad experience in
terms of lower market price after listing and high issue price. Accordingly number of
measures in terms of regulatory, policy level and market oriented were suggested toimprove the investor confidence in equity primary markets. However, this paper does not
highlight the measures for improving investor confidence in secondary market.
C. S. Shylajan and Sushama Marathe (2006) in their research article A study of attitudes
and
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trading behaviour of stock market investors, identify the major factors responsible for
determining the attitudes and trading behavior of stock market investors. Based on their
shared investing attitude and behaviour, the stock market investors are classified into twocategories i.e. aggressive investors and non aggressive investors.
John Graham and Alok Kumar (2006) in their study Do dividend clienteles exist?
evidence on dividend preferences of retail investors evaluates portfolio holdings of retailinvestors of older and low income category, this study suggests that these investors preferdividend paying stocks, the study also highlights the trading behaviour of retail investors
and indicates that the investor trades around dividend events are consistent with clientele
behaviour. Further, it also points out that old and low income investor exhibits abnormalbuying behaviour following dividend announcements.
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INTRODUCTION
Stock Exchange
Stock Exchange is an institution evolved in industrially developed capitalist economics
with free market mechanism. In typical free market, the individual investor would
ideally choose to make money available to those new or existing enterprises which offer
the best prospect of immediate and continuing profit. And since he is entitled to withdraw
money from a less profitable enterprise by selling his shares, as long as he can find a
buyer and to reinvest it, he will be continually looking for new and more profitable
outlets for his money. Therefore, in theory, stock exchange was termed as institution
allocator of resources par excellence.
The stock exchange an institution broadly fulfilling the following objectives:
Making funds available to entrepreneurs for business activity ;
Ensuring maximum return on the investment made by the investors;
Providing platform for saving, investment and reinvestment activity.
In India, however, the institution of stock exchange evolved and developed as an
organization offering place for speculative activity, which had little to do with industrial
financing and investment activity. After 1865, a number of financial failures and
problems in speculative activity led brokers to form an association in 1875. It was only
the disaster that followed the boom, which brought the brokers together in July, 1875 to
form an association that is today called the Stock Exchange, Bombay.
Stock exchange remain absolutely on the borders of industrial financing and
investment activity in pre-independence economy, the primary reason being the general
distrust by the public of private business. With the absence of any meaningful role in
industrial financing and investment activity, the functioning, organization and
management of the institution of stock exchange tended to develop as that of an
organization primarily concerned with speculative activity. The organization and
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management of major stock exchanges formed during this period did not prove to be
positive to the developments and desirable changes later, more particularly during the
period of 1980s.
The recent reforms in stock markets were triggered by issues of surveillance and
any developments that will have a bearing on the quality and effectiveness of the
surveillance and implications on the quality of growth. This is an important aspect that
should be seriously addressed to the stock markets and the regulators. While government
and regulatory authorities will have a greater role to play in promoting competition, the
stock exchanges at their individual level have to take keen interest and initiate measures
that would promote greater inter-exchange cooperation helping each other on overcoming
shortfalls and setbacks. A fair degree of cooperation is required with in the stock
exchanges in the country to avoid imprudent practices and inducements that will be
harmful to the health of the markets,
The term Stock Market' is a concept for the mechanism that enables the trading of
company stocks (collective shares), other securities and derivatives. The stock market is
one of the most important sources for companies to raise money. This allows businesses
to go public, or raise additional capital for expansion. The liquidity that an exchange
provides affords investors the ability to quickly and easily sell securities. This is an
attractive feature of investing in stocks, compared to other less liquid investments such as
real estate.
History has shown that the price of shares and other assets is an important part of the
dynamics of economic activity, and can influence or be an indicator of social mood.
Rising share prices, for instance, tend to be associated with increased business investment
and vice versa. Share prices also affect the wealth of households and their consumption.
Therefore, central banks tend to keep an eye on the control and behavior of the stock
market and, in general, on the smooth operation of financial system functions. .
Exchanges also act as the clearinghouse for each transaction, meaning that they collect
and deliver the shares, and guarantee payment to the seller of a security. This eliminates
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the risk to an individual buyer or seller that the counterparty could default on the
transaction.
The smooth functioning of all these activities facilitates economic growth in that lower
costs and enterprise risks promote the production of goods and services as well as
employment. In this way the financial system contributes to increased prosperity.
Despite its expansion a very small percentage of households savings is channelised into
the securities market. What worries further is the intention revealed that the majority of
existing shareholders are unlikely to invest in the securties market in the coming years. It
indicates lack of condidence by the existing investors in the securties market. The recent
crises on the equity market has highlighted the deficiencies of governance with broker-
run exchanges. While there is a broad agreement that the governance structures of the
broker-run exchanges need to be transformed.
HISTORY OF STOCK EXCHANGES IN INDIA
The origin of stock exchanges in India can be traced back to the later half of 19th century.
After the American Civil War (1860-61) due to the share mania of the public, the number
of brokers dealing on shares increased. The brokers organized an informal association in
Mumbai named The Native Stock And Share Brokers Association in 1875.
Increased activity in trade and commerce during the First World War and SecondWorld War resulted in an increase in stock trading. Stock exchanges were established in
different centres like Chennai, Delhi, Nagpur, Kanpur, Hyderabad and Banglore. The
growth of stock exchanges suffered a set back after the end of World War. Worldwide
depression affected them. Most of the stock exchanges in the early stages had a
speculative nature of working without technical strength. Securities and Contract
Regulation Act, 1956 gave powers to the central government to regulate the stock
exchanges. The stock exchanges in Mumbai, Calcutta, Chennai, Ahmedabad, Delhi,
Hyderabad and Indore were recognized by the SCR Act.
Till recent past, floor trading took places in all stock exchanges. In the flooe
trading system, the trade takes place through open outcry system during the official
trading hours. Trading posts are assigned for different securities were buy and sell
activities of securities took place. This system needs a face to face contact among the
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traders and restrict the trading volume. The speed of new information reflected on the
prices was rather slow. The deals were also not transparent and the system favored the
brokers rather than the investors.
The setting up of NSE and OTCEI with the screen based trading facility resulted
in more and more stock exchanges turning towards the computer based trading. Bombay
stock exchange introduced the screen based trading system in 1995.
Madras stock exchange introduced Automated Network Trading System(MANTRA) on
Oct 7th 1996. Apart from Bombay stock exchange, Vadodara, Delhi, Pune, Banglore,
Calcutta and Ahmedabad stock exchanges have introduced screen based trading. Other
exchanges are also planning to shift to the screen based trading.
THE STOCK EXCHANGES
The names of the stock exchanges are given below:
Ahmedabad Stock Exchange
Banglore Stock Exchange
Bhuvneswar Stock Exchange
Bombay Stock Exchange
Calcutta Stock Exchange
Cochin Stock Exchange
Coimbatore Stock Exchange
Delhi Stock Exchange
Guwahati Stock Exchange
Hyderabad Stock Exchange
Indore Stock Exchange
Jaipur Stock Exchange
Kanpur Stock Exchange
Ludhiana Stock Exchange
Madras Stock Exchange
Magadh Stock Exchange
Mangalore Stock Exchange
Pune Stock Exchange
Saurashtra Stock Exchange
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NSE
OTCEI
Inter Connected Stock Exchange
Stock exchanges normally function between 10:00 a.m. and 3:30 p.m. on the working
days.
FUNCTIONS OF STOCK EXCHANGE
The functions of Stock Exchanges are as followed:
Maintains Active Trading: Shares are traded on the stock exchanges, enabling the
investors to buy and sell securities. The prices may vary from transaction to transaction.
A continuous trading increases the liquidity or marketability of the shares traded on the
stock exchanges.
Aids In Financing The Industry: A continuous market for shares provides a
favorable climate for raising capital. The negotiability and transferability pf the securities
helps the companies to raise long-term funds.
Fixation Of Prices: Price is determined by the transactions that flow from
investors demand and suppliers preferences. Usually the traded prices are made known
to the public. This helps the investors to make better decisions.
Ensures Safe And Fair Dealings: The rules, regulations and by-laws of the stockexchanges provide a measure of safety to the investors. Transactions are conducted under
competitive conditions enabling the investors to get a fair deal.
Performance Inducer: The prices of stocks reflect the performance of the traded
companies. This makes the corporate more concerned with its public image and tries to
maintain good performance.
Dissemination Of Information: Stock exchanges provide information through
their various publications. They publish the share prices traded on daily basis along with
the volume traded. Handouts, Handbooks and Pamphlets provide information regarding
the functioning of the stock exchanges.
Self Regulating Organisation: The stock exchanges monitor the integrity of the
members, brokers, listed companies and clients. Continuous internal audit safeguards the
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investors against unfair trade practices. It settles the disputes between member brokers,
investors and brokers.
MOST COMMONLY USED STOCK EXCHANGES-IN INDIA :
THE BOMBAY STOCK EXCHANGE (BSE)
The Indian stock market is one of the oldest markets in Asia. Its history dates
back to nearly two centuries. The earlier records of security dealings in India are meager
and obscure. The East India Company was the dominant institution in those days and
business in its loans securities was transacted towards the close of the eighteen century.
By the 1830s business in corporate stocks and shares in bank and cotton presses
took place in Bombay. Through the trading list was broader in 1839, there were only a
half a dozen brokers recognized by the banks and merchants.
In 1860-61, the American Civil War broke out and Cotton supply from the United
States of America and Europe was stopped. This resulted in the Share Mania for cotton
trading in India. The number of brokers increased to between 200 and 250. However, at
the end of the American Civil War, 1865 a disastrous slump began- for example, a bank
of Bombay share that had touched Rs. 2850 could only be sold at Rs. 87.
At the same time, brokers found a place in Dalal Street, Bombay where they could
conveniently assemble and transact business. In 1887, they formally established the
Native Share and Stock Brokers Association. In 1895 the association acquired premises
in the same street; it was inaugurated in 1899 as the Bombay Stock Exchange.
The Bombay Stock Exchange is governed by a board, chaired by a non-executive
chairman. The executive director is in charge of the administration of the exchange and is
supported by elected directors, Securities Exchange Board of India (SEBI) nominees, and
public representatives.
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INVESTMENT ANALYSIS
This study told that when an investor decides to invest in stock market and when he
decides to leave i.e. the decisions regarding buying and selling are based on some
analysis. What are that factors, on the basis of which he decides to, make investment in
stock market? Investors take several precautions before investing. They analyze various
factors in terms of fundamental analysis as well as technical analysis. After analyzing all
the factors they decided whether it is the right time to invest in market or whether it is the
right time to invest in any particular company. All of their decisions are based on their
analysis.
FUMDAMENTAL ANALYSIS
The Intrinsic value of an equity share depends on multitude factors. The fundamental
school of thought appraised the intrinsic value of shares through:
1. Economic Analysis
2. Industry Analysis
3. Company Analysis
Economic Analysis
The level of economic activity has an impact on investment in many ways. If the
economy grows rapidly, the industry can also be show rapid growth and vice versa.
When the level of economic activity is low, stock prices are low, and when the level
of economic activity is high, stock prices are high reflecting the prosperous outlook
for sales and profits of the firms. The analysis of macro economic environment is
essential to understand the behavior of the stock prices. The commonly analyzed
macro factors are as follows:
1. Gross Domestic Product (GDP)2. Savings and Investments3. Inflation4. Interest Rates
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5. Budget6. The Tax Structure7. The Balance of Payment (BOP)8. Monsoon and Agriculture9. Infrastructure Facilities10.Demographic Factors11.Economic Forecasting12.Economic Indicators13.Diffusion Index
Industry Analysis
An Industry is a group of firms that have similar technological structure of production
and produce similar products. For the convenience of investors, the broad
classification of the industry is given in financial dailies and magazines. Companies
are distinctly classified to give a clear picture about their manufacturing process and
products. Factors that are considered under Industry Analysis are:
1. Industry Life Cycle Analysis2. Growth of the Industry3.
Cost structure and profitability
4. Nature of the product5. Nature of the competition6. Government policy7. Labour8. Research and Development9. Pollution standards10.SWOT Analysis
Company Analysis
In the company analysis the investor assimilates the several bits of information
related to the company and evaluates the present and future values of the stock. The
risk and return associated with the purchase of the stock is analyzed to take better
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investment decisions. The valuation process depends upon the investors ability to
elicit information from the relationship and inter- relationship among the company
related variables. The present and future values are affected a number of factors and
they are as follows:
1. The competitive edge of the company2. Earnings of the company3. Capital Structure of the company4. Management of the company5. Operating efficiency of the company6. Financial Performance of the company7. Historical price of stock8. P/E ratio9. Economic condition10.Stock market condition
TECHNICAL ANALYSIS
The share price movement is analyzed broadly with two approaches. One is Fundamental
Approach and other is Technical Approach. Technical Analysis is a process of
identifying trend reversals at an earlier stage to formulate the buying and selling strategy.
With the help of several indicators they analyze the relationship between price - volume
and supplydemand for the overall market and the individual stock. Volume is favorable
on the upswing i.e. the number of shares traded is greater than before and on the
downside the number of shares traded dwindles. If it is the other way round, trend
reversals can be expected. Generally used technical tools are:
1. Dow Theory2. Volume of Trading3. Short Selling4. Odd Lot Trading5. Bars and Line Charts6. Moving Averages
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MANAGERIAL USEFULNESS OF THE STUDY
The Managerial usefulness of the study is to provide regular market to the securities. It
Encourages the investment habit of the investors so that they invests the more in the stock
market. The study Provides the Liquidity to the securities. It also provides a mechanism
for continue our evolution. It acts as an intermediary between buyers and sellers. It
provides stability in the prices of securities. It publishes regularly stock price quotation
which provides facility of a trading hall for the member to transact business.
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OBJECTIVES OF STUDY
The objectives of the study are as follows:
The objective of the study is to know investors investment decisions in stock
market.
To understand the perceptions of investors towards Indian Stock Market.
To know about fundamental factors like economic factors, industry analysis,
company analysis which affects investment decisions.
To know about technical factors like charts, trend lines, P/E ratio, moving
average, oscillators etc. which affects investment decisions.
To identify the problems in the working of stock exchanges.
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a) Non-Probabilistic Sampling: - It is that type of sampling which is
according to the convenience of researcher therefore it is called
convenience research also.
b) Probabilistic Sampling: - Probabilistic sampling is characterized by the
fact that each element of the population is known & non-zero chance of
being included in the sample.
The non probabilistic sampling technique is used here
because the findings are based on: -
1. Selected Brokers Interviews
2. Selected Investors Interviews
Data Source: - This project requires data that have already been collected by
someone else or newer one. Here the newer data has been analyzed there for
primary data and secondary data is used.
ResearchInstrument: - Research instrument is used for collecting the data. This
relates to the tools used for collection of data and other information required for
the purpose of the project. Research Instrument used in the project is
questionnaire.
Sample Size: -For the purpose of analysis the project has been taken with 50
Investors as samples.
Sampling Unit: - It covers Investors as measuring unit.
Sampling Area: - New Delhi
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RESEARCH METHODOLOGY AT A GLANCE
Research Problem: - An Analysis of Stock Market- In India
Research Design: - Descriptive or Diagnostic
Data Collection:-
Data Type: - Primary and secondary data
Data Collection Tools: - Questionnaire
Sampling:-
Sampling Unit: - Investors
Sampling Area: - New Delhi
Sample Size: - 50 Investors
Research Approach: - Survey
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2.What views regarding general investment period
Long Term Medium Term Short Term
10
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0
5
10
15
20
25
Option A Option B Option C
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3. What is your stock investment experience with Primary Market?
Very Satisfactory and Rewarding Reasonably Unsatisfactory
Unsatisfactory Very Unsatisfactory
3
38
7
2
0
5
10
15
20
25
30
35
40
Option A Option B Option C Option D
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4. How much your satisfaction level with brokers?
Very satisfied Somewhat satisfied
Somewhat dissatisfied Very dissatisfied
5
36
6
3
0
5
10
15
20
25
30
35
40
Option A Option B Option C Option D
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5. What deficiencies have you found in your brokers services
Bad execution High cost
Accounting Snafus Any other
10
22
14
4
0
5
10
15
20
25
Option A Option B Option C Option D
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6. what should be ideal brokerage according to investors opinion?
0.25% 0.35%
0.50% 0.65%
22
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8
4
0
5
10
15
20
25
Option A Option B Option C Option D
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7.What is the reason behind dealing with sub-brokers?
Sub-broker provide services at your doorstep
You dont know about any stock
Not the stock exchange members
Any other reason
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18
6
2
0
5
10
15
20
25
30
Option A Option B Option C Option D
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8. What is the confident level of investors on the fair dealing with their brokers?
Very confident Somewhat confident
Somewhat doubtful Very doubtful
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25
8
5
0
5
10
15
20
25
30
Option A Option B Option C Option D
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9. Which one of your most favorite Stock Exchange?
NSE BSE Any other
36
10
4
0
5
10
15
20
25
30
35
40
Option A Option B Option C
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10. On what Basis you invests in stock market?
On Fundamental Analysis On Technical Analysis
Both
15
13
22
0
5
10
15
20
25
Option A Option B Option C
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11. In which segment do you deal?
Equity commdity
mutual others
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25
8
5
0
5
10
15
20
25
30
Option A Option B Option C Option D
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12.Do you think adequate steps are taken to educate the investors regarding
investment?
Yes No
28
22
0
5
10
15
20
25
Option A Option B
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RECOMMENDATIONS
The stock exchange the important part of country capital market. It is the central place
where industrial securities are bought and sold under a codes of rule and regulation for
consideration through member as broker. The recent implementation made by SEBI leads
to great impact on the stock market.
The main recommendation from the study are as follow:-
The regional stock Exchange have been out of race because of the
technological development of NSE and BSE, so the Government should
initiate and they could be development for commodity exchange which has a
bright future in india ahead.
There should be a complete online system which enables the investor to
participate in and also the general public should be making aware of the
system.
Prevent exploitation of investor by the market malpractices by introducingformal market making arrangement in best possible manner.
To attract more investor, the companies should introduce more service center
and online share trading because investor are not satisfied till the they do not
meet the dealing physically along with stock Broker/investor.
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LIMITATIONS OF THE STUDY
Working on An analysis of stock market-In India itself is a great experience and
regarding my project I faced certain limitations during my survey for the project are as
follows:
On-site observation and direct interviews was a tedious job and took a lot of time.
The sample size was small.
The results may not be very accurate, as I did not interact with each and every
employee.
I could not get exact information, as I was not given the opportunity to have more
exposure of different parts of India as I was only taking care of Faridabad City. While conducting the project, I faced time constraint problem.
Some times the brokers/investors not respond proper cooperation with my
questionnaire, they take it as formality.
The cost occurred during survey was also a problem.
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CONCLUSIONS
There are some suggestions which may be helpful for brokers and Investors regarding
analyzing stock market which increased confidence among investors regarding stock
market. These are:
1. A uniform organizational structure among all the stock exchanges having
democratic representation of different interest groups would be proposed. It
would facilitate in dealing with crises situation promptly, firmly and impartially.
2. Steps to be taken towards improvement of operational efficiency includes
enhancement of trading hours, strict vigilance on the price manipulation,
advancement of computerized trading and development of communication system
in the remote areas of the country.
3. Prudent use of available mechanism like imposition of margin money, volume
restrictions, and circuit breakers to control the temporal disequilibrium of the
market.
4. To increase investors confidence in stock market must be regained in order to
encourage capital mobilization through primary market issues.
5. The investor forum as well other authorities should have power to dispose off the
cases summarily and to award compensation to the investors.
6. The detail information regarding investments which investors wants may include
the form of organization, management, capital adequacy, liabilities, defaults and
penal actions taken by the regulator and self regulatory organizations against the
broker in the past and other relevant information, must provides them.
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7. The stock market is integrated with banking sector so that the effective and
efficient payment, settlement and clearing systems are developed.
8. Further expansion of banking activities in conjunction with further efforts to
liberalize the banking system.
9. The culprit needs to be punished in an exemplary manner so that it becomes a
lesson for others. The investors should have means to recover their loss caused by
the culprit.
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REFERENCES
1. Gupta L.C., Share Holders Survey: Geographic Distribution, Manas Publications,New Delhi, P. 86
2. Rao Chalapati K.S., M.R. Murthy and K.V.K Ranganathan, 1999, Some aspects
of the Indian Stock Market in the post liberalization period, Journal of IndianSchool of Political Economy
3. John Graham and Alok Kumar, 2006, Do Dividend Clienteles Exist? Evidence onDividend Preferences of Retail Investors, [Online], Social Science ResearchNetwork, Available from http ://papers. ssrn.com/ sol3/ papers. cfm?abstract _id
= 482563
4. Kevin James, 2000, The Price of Retail investing in the UK, [Online], SocialScience Research Network, Available fromhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=428041
5. K Santi Swarup, 2003, Measures For Improving Common Investor Confidence InIndian Primary Market A Survey, [Online], National Stock Exchange India
Limited, Available from http://www.nseindia.com/content/research/Paper64.pdf
6. Shylajan C. S. and Marathe Sushama, 2006, A Study of Attitudes and TradingBehaviour of Stock Market Investors, The ICFAI Journal of FinancialEconomics, Vol. 4, No. 3, pp. 54-68
7. Avadhani V.A. 2004 Capital Market Management, Himalaya Publication house,Bombay.
8. Weblinks referred are:
www.bseindia.com
www.nsdl.com
www.nseindia.com www.sebi.gov.in
www.capitaline.com
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QuestionnaireOn
To Analyse The Investment Behaviour OfRetail Investors Towards Stock Market
1.What factor will you consider while making investment?
Security & saving High return
Tax factor convenience
2.What views regarding general investment period
Long Term Medium Term Short Term
3. What is your stock investment experience with Primary Market?
Very Satisfactory and Rewarding Reasonably Unsatisfactory
Unsatisfactory Very Unsatisfactory
4. How much your satisfaction level with brokers?
Very satisfied Somewhat satisfied
Somewhat dissatisfied Very dissatisfied
5. What deficiencies have you found in your brokers services
Bad execution High cost
Accounting Snafus Any other
6. what should be ideal brokerage according to investors opinion?
0.25% 0.35%
0.50% 0.65%
7.What is the reason behind dealing with sub-brokers?
Sub-broker provide services at your doorstep
You dont know about any stock
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Not the stock exchange members
Any other reason
8. What is the confident level of investors on the fair dealing with their brokers?
Very confident Somewhat confident
Somewhat doubtful Very doubtful
9. Which one of your most favorite Stock Exchange?
NSE BSE Any other
10. On what Basis you invests in stock market?
On Fundamental Analysis On Technical Analysis
Both
11. In which segment do you deal?
Equity commdity
mutual others
12.Do you think adequate steps are taken to educate the investors regarding
investment?
Yes No
Name of the Investor ____________________________________
Age ____________________________________
Sex ____________________________________
Email address _____________________________________